Adjustment to Conversion Price of First Offshore Unsecured Convertible Bonds
Original: 公告本公司海外第一次無擔保轉換公司債轉換價格調整
Summary
Vanguard International Semiconductor has announced a conversion price adjustment for its first series of offshore unsecured convertible bonds (海外第一次無擔保轉換公司債). Such adjustments are typically triggered by corporate actions — most commonly a cash dividend distribution — that activate anti-dilution provisions embedded in the bond indenture, lowering the conversion price and thereby increasing the number of shares into which each bond may be converted. Equity investors should note that a lower conversion price raises potential dilution upon conversion; full terms are available on MOPS.
Full Translation
Subject-line translation: 'Announcement of Conversion Price Adjustment for the Company's First Offshore Unsecured Convertible Bonds.' The company is disclosing a formal reset of the conversion price applicable to its first tranche of offshore, unsecured convertible bonds. Under Taiwan FSC rules and standard CB indenture terms, the conversion price must be adjusted downward when the issuer distributes a cash dividend, issues bonus shares, conducts a rights offering, or undertakes other capital actions within the conversion period. The adjusted conversion price governs how many new ordinary shares a bondholder receives upon exercising the conversion right; a lower price is dilutive to existing shareholders. [Body not available — subject line only. See MOPS for full announcement.]